Background:
Puppet Killer Productions Inc. obtained an arbitral award of $171,324.61 against IndustryWorks Studios Inc. on April 28, 2023. Despite multiple payment demands, the respondent did not pay. The award was later recognized as a court judgment on February 1, 2024.

Garnishment & Security Dispute:
The petitioner secured a post-judgment garnishing order on April 10, 2024, attaching funds from the respondent’s CIBC bank account. The full award amount was paid into court. However, before this, the respondent obtained a $200,000 loan from BondIt LLC, secured by all its assets, creating a priority dispute over the garnished funds.

On April 25, 2024, the respondent applied to have the funds released, arguing that BondIt LLC had a superior claim. Meanwhile, the petitioner pursued additional garnishments, securing a second garnishing order on November 21, 2024, for $46,262.02 CAD and $4,998.25 USD. The respondent sought to set aside this second order, alleging material non-disclosure regarding its security agreement with BondIt LLC.

Court’s Decision:
The court found the post-judgment garnishment valid under the Court Order Enforcement Act and ruled that the petitioner had no obligation to disclose BondIt LLC’s security. The court dismissed the respondent’s application, allowing the petitioner to continue pursuing recovery.

Outcome:
The petitioner, Puppet Killer Productions Inc., successfully defended its garnishment, keeping access to the funds paid into court.